The Minister of finance Enoch Godongwana tabled his Budget review on the 23rd February 2022. The following were the key tax issues arising.
- Personal Income tax
- Inflationary relief through a 4.5 per cent adjustment in the tax brackets and rebates.
- Employment tax incentive
- Expanded through a 50 per cent increase to a R1 500 per month.
- Fuel & RAF levies
- No change to the general fuel levy or the Road Accident Fund (RAF) levy.
- Excise duties
- Increases of between 4.5 per cent and 6.5 per cent on alcohol and tobacco.
- Corporate Income Tax
- Effective for tax years ending on or after 31 March 2023 the rate is reduced to 27%
- Disclosure of wealth
- It is proposed that all provisional taxpayers with assets above R50 million be required to declare specified assets and liabilities at market value in their 2023 returns.
- Assessed losses
- It is proposed that the offsetting of the balance of assessed losses brought forward will be limited to 80% of taxable income for years of assessment ending on or after 31 March 2023.
- Carbon Tax
- The first phase will be extended by three years for the period 1 January 2023 to 31 December 2025.
- Plastic bag levy
- Increase to 28c/bag from 1 April 2022.
- Health Promotion Levy
- Beverages with more than 4g of sugar per 100ml will have a levy of 2.31c/g from 1 April 2022.